INNOVATIONS ENABLING SUSTAINED PERMIAN GROWTH MCCOMBS ENERGY - - PowerPoint PPT Presentation
INNOVATIONS ENABLING SUSTAINED PERMIAN GROWTH MCCOMBS ENERGY INITIATIVE CONFERENCE PERMIAN 2025 David Baldwin February 8, 2019 SCF P ARTNERS U.S. O IL AND L IQUIDS P RODUCTION 18.0 Conventional Shale Oil Oil Decline Revolution 16.0 y)
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MCCOMBS ENERGY INITIATIVE CONFERENCE – PERMIAN 2025 David Baldwin February 8, 2019
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0.0 2.0 4.0 4.0 6.0 8.0 10.0 12.0 14.0 14.0 16.0 18.0
US Oil and nd Li Liquids s Pro rodu ductio tion (MM MMBOE E per r Day) y)
U.S.
Oil a l and d Liqu quids
Shale Oil Revolution Conventional Oil Decline
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0.0 2.0 4.0 4.0 6.0 8.0 10.0 12.0 14.0 14.0 16.0 18.0
US OIl and nd Li Liquid ids Pro rodu duct ctio ion (MM MMBOE E per r Day)
U.S.
Oil a l and d Liqu quids ( (le less ss P Per ermian si since e Se Sept 0 08) 8) Per ermian O Oil a l and L Liquids si since e Se Sept 0 08
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1 2 3 4 5 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Permian Liquids Production
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MMBOEPD Increm. 2010 2018 CAGR % of Increm. Ex Iraq / Iran Oil and Liquids US & Canada 13.1 21.9 6.6% 80% 109% Iraq & Iran 6.6 9.5 4.7% 26% Rest of World 68.5 67.8
Total 88.2 99.2 1.6% 100% Natural Gas US & Canada 16.2 19.9 2.6% 88% 148% Iraq & Iran 4.1 5.8 4.4% 40% Rest of World 38.3 37.1
Total 58.6 62.8 0.9% 100% Oil, Liquids, and Natural Gas US & Canada 29.3 41.8 4.5% 82% 118% Iraq & Iran 10.7 15.3 4.6% 30% Rest of World 106.8 104.9
Total 146.8 162.0 1.2% 100%
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5 10 15 20 25 30 35 40 45
2000 2010 2018 2000 2010 2018 2000 2010 2018 US and Canada Russia Saudi Arabia
Oil, Liquids, and Natural Gas (MMBOEPD)
2000 2010 2018 Russia 2000 2010 2018 U.S. and Canada 2000 2010 2018 Saudi Arabia
CANADA
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U.S.
Natural Gas Price ($/ MMBTU) Crude Oil Price ($/BBL) Pre-Shale $10.00 $100.00 Post Shale 3.00 50.00
Annual Savings = $3 Trillion 4% of Global GDP
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Solar
5 10 15 20 25 30 35 40 45 50 2010 2011 2012 2013 2014 2015 2016 2017 2018
Energy Production / Consumption (MMBOEPD)
US Energy Demand
Wind Geothermal Hydroelectricity
Coal Natural Gas Oil and Liquids
Other Biomass & Waste
Nuclear
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Source: Energy of North Dakota
New - Unconventional
8 Traditional Vertical Drilling Horizontal Drilling + Fracturing
32 Wells/Section 4 100’ Pay / Well 10,000’ 3200’ Reservoir Exposure 40,000’
Old New
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(“EFFICIENCY”)
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(“PRODUCTIVITY!”)
20 40 60 80 100 120 140 160 180 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Cumulative bbls, thousands Months
Delaware Basin
2017 2016 2015 2014 2013 2012 2011
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6727 7155 7677 8034 8378 1000 2000 3000 4000 5000 6000 7000 8000 9000 2014 2015 2016 2017 2018
Wellbore Lateral Length (FT.)
AVERAGE U.S. HORIZONTAL WELLBORE LENGTH
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Breakeven Prices ($/BBL) =
Efficiency X Service Costs Productivity X Reservoir Exposure
Unit 2014 2015 2016 2017 2018 2019 “Efficiency”
(Days/Well)
90% 90% 90% 95% 95% “Service Costs”
($/Days)
90% 85% 120% 110% 100% “Productivity”
(BBLS/Foot)
105% 110% 110% 110% 110% “Lateral Length”
(Feet)
110% 110% 110% 105% 105% “Breakeven Price” $100/BBL $71/BBL $45/BBL $40/BBL $36/BBL $30/BBL
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(“EFFICIENCY!”)
DUAL OR “ZIPPER” COMPLETIONS OPERATIONS
Sources: Statoil, Natural Gas Industry B,
A B
LARGE DIAMETER COILED TUBING LOCAL SAND PAD DEVELOPMENT
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(“PRODUCTIVITY!”)
GREATER PROPPANT LOADING COMPLETION TOOLS TIGHTER STAGE SPACING
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GEOSTEERING
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(“RESERVOIR EXPOSURE”)
HIGH SPEC RIGS
Sources: American Oil & Gas Reporter, Kinetic Upstream Technologies, Drilling Formulas, Ulterra
ROTARY STEERABLE SYSTEMS PDC BITS HIGH TORQUE MUD MOTORS
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DECARBONIZATION ADVANCED LEARNING AUTOMATION FRAC OPTIMIZATION
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